Air France to be the first european airline to operate the A380. The carrier will effectivelly launch a daily CGD-JFK service from november 23rd. A booking simulation shows that the new aircraft will be operated for the 01.30 pm service and will replace the 777-300 ER actually used. That will incease capacity on the route as the company does not seem to plan cutting flights. The airline will offer a three class configuration: 9 First seats, 80 Business and 449 Economy (538 Seats offered in total). A simulation on their website shows that the fares will range from 216 Euros for the lowest, and 5260 Euros for first class travellers. There is certainly a yield management component here but if we assume a 80% load factor, it looks like high yield contributors (Business + First), representing 16 per cent of all passengers are going to provide 35 per cent of the flight revenues. This is classical airline revenue strategy. But i just wonder if increasing capacity now is not too soon as the industry is not yet out of troubled waters.
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ReplyDeleteWhat about the potential benefits that the aircraft should bring? This is an environment friendly airplane that will reduce fuel consomption and Air France will realize economies of scale. The airline should save up to 15 million euros for each A380 operated. So this is a very profitable aircraft during crisis times as you said. The question i'm rather asking is whether Paris' Hub will make it. We already know that passengers processing at that airport is often a nightmare. Nearly 550 people waiting for the same flight won't be an easy to deal with in case of delays.Air France should beter have a solid airport terminal operations contengency plan.
ReplyDeleteCramped airport? What alternative do they have then? Schipol? don't forget french are french. but anyway, i do not agree with the idea that CDG won't make. One thing is that ADP built a brand new terminal (2E) which offers a 660 m long boarding aera for transcontinental flights. The A380 will depart from that terminal. Another thing is that passengers will use double deck boarding gates, which will speed the boarding process.
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